Summary
Arthur J. Gallagher & Co. (AJG) reported a net loss of $(6.0) million, or $(0.07) per diluted share, for the first quarter of 2008, compared to a net earning of $26.4 million, or $0.27 per diluted share, for the first quarter of 2009. This significant turnaround was driven by a substantial reduction in losses from discontinued operations and improved earnings from continuing operations. For the first quarter of 2009, total revenues increased to $401.1 million from $375.8 million in the prior year. Earnings from continuing operations before income taxes saw a notable rise to $43.5 million from $26.9 million. The company's Brokerage segment demonstrated strong revenue growth, while the Risk Management segment remained stable. The Financial Services and Corporate segment experienced a loss. The company maintained its quarterly dividend of $0.32 per share.
Key Highlights
- 1Arthur J. Gallagher & Co. reported a net profit of $26.4 million for Q1 2009, a significant improvement from a net loss of $6.0 million in Q1 2008.
- 2Total revenues increased by 6.8% to $401.1 million in Q1 2009 compared to $375.8 million in Q1 2008.
- 3Earnings from continuing operations before income taxes increased by 61.7% to $43.5 million.
- 4The Brokerage segment saw a 12% increase in total revenues to $289.5 million, driven by acquisitions and new business, though organic growth was slightly negative.
- 5The Risk Management segment's revenues remained relatively flat at $112.2 million, with a slight organic growth of 1.2% in fees.
- 6The company declared and paid a quarterly dividend of $0.32 per common share for both Q1 2009 and Q1 2008.
- 7The company utilized $222.0 million in borrowings under its Credit Agreement as of March 31, 2009, with $214.4 million remaining available.